Green Fund Reaches MVR 1.6 Billion by September

According to the Ministry of Finance, the Green Fund, established to finance environmental initiatives, amassed MVR 1.6 billion by the end of September 2024. In the same month, the state received MVR 88.9 million in green tax, with resorts contributing the largest share at MVR 80.7 million.

The Green Fund collects revenue through green tax, which is levied on tourists staying at resorts, guesthouses, city hotels, and safaris. The breakdown for September reveals contributions of MVR 4.8 million from guesthouses, MVR 2.1 million from tourist hotels, MVR 1.3 million from safaris, and MVR 7,778 from homestays. Among the atolls, Kaafu Atoll contributed the highest amount at MVR 31.4 million, followed by Raa Atoll with MVR 10.3 million and Alifu Alifu Atoll with MVR 7 million.

Currently, the green tax is set at USD 6 per night for tourists staying in accommodations with more than 50 registered rooms on inhabited islands and USD 3 per night for accommodations with 50 or fewer registered rooms. However, significant changes to these rates will take effect on January 1, 2025. The government plans to double the tax rate, increasing it to USD 12 per night for the higher bracket and USD 6 per night for the lower bracket. Additionally, children under two years of age will be exempted from the green tax starting next year.

According to the government’s "Budget Position Report," the tax rate revision is expected to boost green tax revenue by 95.2% in 2025, with projected revenue reaching MVR 963.6 million. The Green Fund, which plays a vital role in environmental conservation efforts, is anticipated to expand significantly under the revised rates.